Thursday, May 3, 2012

Nevada Foreclosure Investors File Massive Federal False Claims Act Suit Targeting HOAs That Allegedly Squeezed Them For Improper Charges

In Las Vegas, Nevada, Vegas, Inc. reports:

  • Attorneys for investors in Nevada foreclosed homes have filed yet another massive lawsuit challenging homeowner association assessments and collection costs. The latest suit was filed secretly in April 2011 in federal court in Las Vegas and it was unsealed on Wednesday.

  • In the suit, investors’ attorneys Puoy Premsrirut and James Adams represent the United States government with their suit filed under the False Claims Act. It was initially filed secretly so the government could review it to see if it wanted to participate in the action.

  • Under the False Claims Act, citizens can sue on behalf of the government when they become aware of alleged wrongdoing causing harm to the government. They can then share any damages collected with the government.In this case, the U.S. Justice Department specifically chose not to intervene in the suit and it chose not to seek dismissal of the suit.

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